US Stocks Fall Amid Global Economic Worries
US stocks declined on Thursday, erasing earlier gains after a series of security incidents in the United States. The S&P 500 fell 0.4%, the Dow Jones Industrial Average lost 0.2%, and the Nasdaq Composite dropped 0.2%.
The market was also depressed by a downgrade in the Atlanta Fed’s GDP growth estimate for the fourth quarter of 2024, which is now predicted to be 2.6% compared to an earlier forecast of 3.1%. The revision was based on recent data releases from the US Census Bureau, which showed a contraction in real gross private domestic investment growth.
The global economy is also facing challenges, with slower-than-expected manufacturing growth in China and a potential impact from US President-elect Donald Trump’s policies. Trump has vowed to implement expansionary policies but has also pledged to impose hefty trade tariffs on major US trading partners like China, Canada, and Mexico. This has sparked uncertainty in the markets and led to some profit-taking.
Meanwhile, Tesla stock fell 6% after the company’s fourth-quarter deliveries missed consensus estimates, while Apple shares dropped 3% amid ongoing competition in the Chinese smartphone market. Crude oil prices rose 1.9% due to declining US oil inventories and optimism about economic recovery in China.
The market will continue to focus on Trump’s policies and the potential impact on the economy and interest rates in 2025. The Federal Reserve has flagged a slower pace of rate cuts in the coming year, citing concerns over sticky inflation and a robust labor market.
